What to Avoid During your Home Purchase

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. There are still a few major hurdles to jump before the house is realy yours. Here are some things to avoid before closing to assure the transaction goes well.

Don't empty your wallet on big-ticket items You may be itching to turn your new living room into a showplace, or celebrate your new castle, but keep away from expensive purchases like furniture, cars, appliances, or vacations until closing. Using plastic to buy furniture could jeopardize your loan process by distorting your numbers. Using cash to buy big items can even be an issue: many lending institutions take into consideration your available cash when approving your mortgage.

Don't get a new job. Your recent work history should show consistency. Getting a new job before you apply for a mortgage loan may not affect your approval at all. However, if you switch careers before you qualify, your loan process could fail or be slowed down.

Don't switch your accounts to a new bank or move around your cash. Your lender will ask for recent bank statements on accounts in your name: savings, checking, money market, and other assets. The lending institution wants to see a steady rise and fall of your funds each pay period, in the interest of ruling out fraud. Changing banks or transferring funds to another account - no matter the purpose - may make it difficult for your lender to verify your funds.

Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. As a rule, your good faith deposit is yours, not the seller's until closing. The good faith money is to be applied to your expenses closing; some FSBO sellers may not understand this. Find a lawyer or other neutral person who is able to hang on to the funds or place them in a trust account until you close. The disposition of earnest funds, if your transaction fails, should be included in the purchase agreement with the seller.

Amity Mortgage LLC can walk you through the pitfalls of getting a mortgage. Give us a call at 2037296681.